Academic journal article Monthly Labor Review

Quid Pro Quo at Michigan Utility

Academic journal article Monthly Labor Review

Quid Pro Quo at Michigan Utility

Article excerpt

Consumer Power Company (CPC) and the Michigan State Utility Workers Council, bargaining for 22 locals of the Utility Workers Union, agreed to a 5-year contract that gives the company the unrestricted right to subcontract bargaining unit work in exchange for job security for 4,000 employees working throughout Michigan's lower peninsula. The two major sticking points in negotiations had centered on CPC's proposals to expand its right to contract out bargaining unit work and to require employees to immediately switch from a traditional indemnity health care plan to a new managed care plan.

Under terms of the pact, the subcontracting provision contained in the previous contract is suspended for the term of the agreement, giving the Michigan utility "virtually an unfettered right" to subcontract any and all bargaining unit work. In return, the contract guarantees the jobs of all current employees by requiring that redundant workers be placed in jobs at their current rates of pay and within a 60-mile radius of their current job locations.

The pact calls for annual wage increases of 10 to 40 cents an hour. …

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